'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
NASCAR president Steve Phelps has issued a letter regarding the compromises made by the governing body in the charter negotiations. An associate of CEO Jim France, Phelps has revealed the details in a letter presented as an exhibit in the ongoing antitrust lawsuit.
The issue revolves around the new charter agreement. Both 23XI Racing and Front Row Motorsports have filed a federal lawsuit against NASCAR and CEO Jim France for alleged monopolistic practices. While several teams had been trying to renegotiate an extension to the existing charter agreement, NASCAR was adamant about implementing the new one, which will be valid from 2025 to 2031.
However, in a letter presented as an exhibit, the governing body has disclosed several compromises on its part to provide a fair deal. The letter, dated September 6th, 2024, has been signed by Phelps. Here's a look at the points mentioned in the letter, as reported by Racer.com.
Trending
1. NASCAR agreed to meet well in advance of the timeline outlined in the existing charter agreement to begin good faith renewal obligations.
2. NASCAR agreed to extend the term length beyond the current media rights agreement.
3. NASCAR agreed to renewal right protections.
4. NASCAR created a team advisory committee to solicit additional input from the teams on major strategic decisions for the industry.
5. NASCAR absorbed all costs of hosting and maintaining the team website on NASCAR’s platform
6. NASCAR lowered the transfer fee from the initial proposal
7. NASCAR waived the debt limits, increased the amount of private equity participation, and worked with teams around the transfer language
8. NASCAR agreed to increase the financial position of the teams, making them the largest beneficiary of the media revenues to the financial detriment of other industry stakeholders.
“Obviously if you decide not to execute your Charter Agreement(s) then you are welcome to race in the 2025 NASCAR Cup Series as an open team and we will be happy to forward you documentation. Whether you renew or not, NASCAR looks forward to working with you in 2025 and beyond,” Phelps wrote in the letter.
"We didn’t get anything we wanted" - FRM's Bob Jenkins responds to NASCAR's compromise claim
Steve Phelps' closing statement against 23XI Racing and Front Row Motorsport's antitrust allegations has seemingly ended a chance of friendly negotiations. In response, FRM owner Bob Jenkins hit back at the NASCAR president's compromises claim.
"We didn’t get anything we wanted. We got a bigger percentage of the purse (than before), but NASCAR got the right to spend a lot more of that money. Once (the charter agreements) become public, I think the typical race fan will look at this and say, ‘Wow, this really was a very onerous deal for the owners," Jenkins told the Athletic.
A series of failed negotiations between 23XI, FRM, and NASCAR over the past few years have resulted in a one-of-a-kind federal lawsuit. As of now, both teams have filed a preliminary injunction in the ongoing antitrust lawsuit, in order to continue racing in 2025 as chartered teams.
